Implementing Change Flashcards
1
Q
The importance of Leadership in management change
A
- Leaders require effective
- information skills (analyse information that relates to change.)
- Interpersonal skills (being able to show empathy and relate/communicate with employees)
- Decision making skills (making timely and well-informed decisions to implement change.)
- If manager can display effective leadership skills, then resistance will be reduced.
- A leader can ‘sell’ the need for change automatically to overcome resistant points. Employees are likely to embrace change if they can trust manager and feel their support.
- Leadership- The process of positively influencing, encouraging, and motivating individuals, to achieve objectives.
2
Q
A successful manager will need to:
A
- Promote the change in a matter that will achieve cooperation and acceptance- be a role model
- Resolve conflicts, which often arises when change is implemented
- Keeps an open mind, seeks new ideas and feedback
- Cultivates a sense of belonging which pushing change
- Provides support, guidance, and training
- Builds and communicates a clear vision
3
Q
Management strategies to respond to KPI’s
A
• Businesses need to ensure that KPI’s are monitored and reviewed regularly so necessary changes can be implemented. To implement change to remain competitive a manager will need to develop appropriate strategies to respond to KPI’s data. More reactive.
4
Q
Staff training Management strategies
A
- Is the process of providing staff with the knowledge or skills required to perform task. Could be on the job or off the job training. Can increase skill level of employees, motivation, increased efficiency.
- KPI high level of staff turnover- staff may want training for career advancement, low rate of productivity growth- increased skill level will increase efficiency.
- Adv- improves employees’ knowledge and skill which improves productivity, improves quality and speed of output, reduces workplace accidents
- Disadv- Takes time away from production, financial cost of training employee can increase expense.
5
Q
Staff motivation Management strategies
A
- Is concerned with the desire or how driven employees are to achieve objectives. It is reflected by the level of commitment and energy employees bring to their job. A business could job re-design, performance related pay, setting goals with employees
- KPI increasing number of complaints- improves customer service, decreasing levels of sales and market share- increased productivity and improves customer service.
- Adv- improves morale which leads to improve corporate culture, encourages employer loyalty through things like performance related pay
- Disadv- not all employees are motivated by same types of rewards, reward may add extra cost to business, time consuming identifying best reward for employee.
6
Q
Change in management styles and skills Management strategies
A
- Style refers to the behaviour and attitude a manager uses when making decisions, directions and motivating staff when implementing plans to achieve business objectives. The factors are nature of task, managers personality, time, and experience. Then name some styles
- Skills are the abilities or expertise that a manager will used to achieve business objectives. Name some skills e.g interpersonal
- KPI- Decrease net profit- maybe time sensitive but managers may go persuasive or autocratic in style to use decision making, leadership, and clear communication skills. Increasing number of complaints- two-way communication with employees would assist in understanding problem areas. Staff Turnover- More staff will leave with autocratic style as they have no say.
- Adv- can alter style depending on situation, variety of styles to choose from that will suit situation and employees needs
- Disadv- some managers need support and training developing new skills, may take time for managers to change their style.
7
Q
Increased Investment in Technology Management strategies
A
- Technology is the practical application of science to the development of products or services to achieve business objectives.
- Technology can be implemented to increase productivity, improve safety, and improve quality.
- Effective use of technology assists a business make better use of its time and increase its output.
- The initial cost of technology may be expensive but in the long run it will most likely improve business performance.
- KPI- Increasing Level of waste- CAM/ production lines can result fewer defects or waste. Increased customer complaints- Use CAD may improve quality. Low number of sales- website can give larger access to customers.
- Adv- Improves speed of making output making it easier to meet deadlines, improves quality and reduces defects which may lead to improved customer satisfaction and increased sales, reduces cost per output.
- Disadv- Cost to install and train employees impacts profits, may lead to redundancies making employees resist change.
8
Q
Improving Quality in Production Management strategies
A
- Quality is the degree to which customers’ expectations is satisfied. Having a higher quality product is one way a business can maintain competitive advantage over rival businesses. Strategies could include QC, QA, and TQM.
- Decreases number of sales- Obtaining QA will give competitive advantage over competitors by improving reputation. Increasing levels of waste- Applying TQM minimises defects and reduces waste. Customer complaints- inspecting goods will result in less defects being passed on.
- Adv- High quality outputs leads to satisfied customers can be done by improving sales, less defects and less waste decreases costs.
- Disadv- Costs time and money to implement and train employees on quality strategies.
9
Q
Initiating Lean production techniques Management strategies
A
- Lean production is a business-wide approach that improves the efficiency and effectiveness of operations by reducing waste and improving quality to increase value for customers. POTZ
- KPI- high number of customer complaints- Aims for zero defects which will satisfy customers because no defects are being passed on to consumer. High level of waste- Using Pull focus or one piece flow can reduce waste of time, labour and excess motion.
- Adv- Reduces costs and without reducing quality, adds value to the good or service to the consumer.
- Disadv- Workers need to be trained for lean which takes time and costs for the business.
10
Q
Cost cutting Management strategies
A
- Involves strategies that aims to reduce expenses. Business will need to decide this without compromising quality. They do this to reduce selling price. Some include: JIT, reduce energy and water costs, using technology.
- KPI- Low profit figures- done to reduce expenses so business is profitable. Increasing level of wastage- decreasing level of waste- done by managing supply chain more effectively. Low number of sales- reduces costs of production to improve competitiveness.
- Adv- Increases net profit figures, can reduce levels of waste
- Disadv- Takes time to monitor costs and determine how to reduce costs, can lead to reduction in quality especially if inferior raw material is sourced, may lead to redundancies.
11
Q
Redeployment of resources Management strategies
A
- Refers to moving resources from one area of the business to another. Using them in different ways can improve the efficiency and effectiveness of a business.
- Natural- Occur in nature water, land wood etc. Business may decide to recycle water or resources from overseas supplier.
- Capital- includes equipment, buildings, and technology. Can redeploy to improve efficiency rather than allow a machinery to sit idle. A business could move productions overseas.
- Labour- Includes employees. May redeploy them in another area to reduce paying for redundancies or trained to gain job knowledge in another area of the business.
- KPI- High levels of turnover and workplace accidents- Employees are redeployed by automation where jobs are repetitive or dangerous. High level of wastage- Consider recycling natural resources such as water or solar power.
- Adv- Can lead to more efficient use of resource which can decrease expenses, can improve sales net profit and morale
- Disadv- May have negative effect on employee if they are transferred. E.g Low motivation, takes time to redeploy resources, there may be financial cost when redeploying resources
12
Q
Seeking new business opportunities domestically and globally
A
- Business may do this to respond to strong competition, gain higher profit margins, attract new customers, capitalising on business success.
- number of strategies that a manager can pursue to create new business opportunities that are proactive in nature. Two categories Domestic and globally
- Domestic opportunities- are new business opportunities that arise from within the domestic market which the business operates in. Expanding market share domestically is easier as it is cheaper, fewer regulations and no language barrier. Role of the manager to seek business opportunities to increase market share.
- Global Opportunities- refers to circumstances arsing beyond domestic market. Australia is a relatively small market and the ability to operate on a global scale brings opportunities for business to be more successful and increase market share beyond local market.
13
Q
Multiple Branding- domestic
A
- Businesses sells multiple brands in the same market. While customers feel like they have choice they are purchasing from one or two major businesses.
- Adv- business holds more shelf space, leaving no room for competitor, fills all price and gaps in the market by providing cheaper options, saturates the market
- Disadv- multi- branding can effect business imagine, customers may think business is profit orientated, customers can be confused by multi-branding and switch products
14
Q
Product differentiation-domestic
A
- A business uses brand names and advertising to establish some key differences between product and substitutional products. Businesses do this to make their product stand out to make it appear differently to existing products on market.
- Adv- charges a premium price, enters new market and attracts new customers
- Disadv- competitors can copy taking away market share, can also be costly, could take a long time to achieve brand image.
- Lush a makeup brand does this by committing ethical products and offers free sample which brands like Sephora don’t.
15
Q
Franchising-domestic
A
- Allows one business to operate under the trading name of another business’s established brand and sell its products. The franchisor grants the rights to use business name and franchisee purchases the franchise.
- Adv- Allows business to expand its operations without needing to borrow large amounts of capital, potential losses are minimised if not successful as costs are on franchisee
- Disadv- can result in loss of control, franchisee and franchisor can run into disagreements when negotiating changes, franchisee may not deliver product/ service consistently
16
Q
Government services-domestic
A
- Small businesses Victoria is a government department that offers advice and assistance to businesses seeking opportunity. Victoria provides specific programs and funding in areas such as: new energy job funds, providing workshops on how to grow business, bringing expert advice.
- Adv- access to experts in the area, free services and funding available
- Disadv- Limited access to financial assistance, advice may be generic and not suitable to individual businesses.
17
Q
investment in R&D -domestic
A
- Investment in R&D refers to activity’s companies undertake to innovate and introduce new products and services
- Adv- allows business to remain competitive and ahead of trends, opportunity to increase sale
- Disadv- Research is expensive and time consuming, can be risky as outcome may not lead to success.
- Coles- Identified 33% of people do not know what to have for dinner at 5pm
18
Q
Exporting- Global opportunities
A
- A business exports when it sends goods or services to another country for sale. Once business considered laws, culture and demographics, exporting can allow businesses to access larger markets. Austrade helps business to do so.
- Adv- access to larger markets, opportunity to increase sales and profit, assists in spreading risk of a business.
- Disadv- Must understand different culture, hidden costs involved in meeting regulations
- Coles- flagged its exporting opportunities in its $400 million meat segment
19
Q
Government Services Exporting
A
- Australian Trade and investment commission- role to advance Australia’s international trade and education, investment, and tourism interests by providing information, advice, and services. Achieved by making connections overseas and promoting Australian business. Austrade.
- Adv- access to experts in the area, free services, and funding available
- Disadv- Limited access to financial assistance, advice may be generic and not suitable to individual businesses.
20
Q
Online shopping Global
A
- Offering customers, the ability to browse available goods and services via the internet, order items and services, purchases, pay online and organise delivery.
- Adv- Allows the whole world to be a potential market for the business, encourages expansion of the customers base thus increasing market share
- Disadv- can be time consuming and expensive, technology will pose as a financial cost, staff will need to be trained
- Amazon example of successful online shopping how they can sell goods online to Australia from being an American company
21
Q
Taking advantage of new technology Exporting
A
- Using automation and robotics to support online orders
- Adv- can improve quality or service, can improve efficiency/ increase productivity as waste reduce and speed increases, possibility of creating new markets
- Disadv- investing in technology can be expensive to set up and maintain, staff may require training, employees may be replaced, may take time to research and implement
- Coles has partnered with Ocado which will employ AI technology for pick and pack online shopping orders.
22
Q
The principle of Learning Organisations (Senge)
A
- Senge developed a concept that business should aim to become learning organisations to excel in the future. He suggests that a business must have dynamic entities as they adapt and continually improve into the business they inspire to be. Organisations must continually expand peoples capacity, patterned of thinking and aspirations set free.
- Principles are system thinking, personal mastery, mental models, building shared vision, team learning.
23
Q
System Thinking
A
- The cornerstone of learning organisations. The ability to see the big picture beyond what’s occurring at a business. It is essential to look at management as a whole and the interrelationships between all parts. Senge argues a long-term approach should be taken not short-term.
- At Google they focus on the future of their business creating employees who can foster their innovation for the better of consumers.
24
Q
Personal Mastery
A
- Businesses learn through individuals who learn. Defined as the discipline of continually deepening personal vision. People who have personal mastery are continual learns who are aware of what they know, what they don’t know and how to improve. This includes developing skills looking objectively at oneself and abilities.
- For this to occur businesses need to provide training and development, performance management and appraisal and career progression.
- At Google they have fostered a culture where individuals are driven to learn and are surrounded in learning opportunities helps a business grow more towards a learning organisation.
